Pinterest Posts Strong Q1 Revenue

Pinterest reported revenue of $485 million in the first quarter of 2021, up 78% compared with the period a year ago, topping FactSet’s consensus projection of $470 million for the three months. U.S. revenue of $390 million was up 65% year-over-year, driven by growth in average revenue per user, while international revenue soared 170% versus the first quarter of 2020 to $95 million, also driven by average revenue per unit growth and helped along by a rise in monthly active users. Pinterest said in its shareholder letter Tuesday that it saw increased demand from small and midsized advertisers, which accounted for nearly one-half of total revenue for the quarter, as well as gains in conversion-based revenue, with a significant share coming through automatic bidding. 478 million monthly active users The company reported 478 million monthly active users (MAUs) as of March 31, up 30% from the prior-year period and slightly short of FactSet’s consensus estimate of 480.5 million. The company's 90 million MAUs in the U.S. were up 9% year over year, while international MAUs leaped by 37% to 380 million. Pinterest posted a generally accepted accounting principles net loss of $21.574 million, down from $141.196 million in the first quarter of 2020. Its adjusted earnings before interest, taxes, debt and amortization was $84 million, compared with a loss of $53.32 million in the quarter a year ago. Chief financial officer and head of business operations Todd Morgenfeld said in a statement, “Q1 results were strong, building off the momentum of 2020. Continued rapid growth of our international business and increased adoption from medium and small advertisers drove 78% year-over-year revenue growth. While we continue to navigate Covid-19 uncertainty, we plan to stay focused on driving investments that deliver an inspirational [Pinterest user] experience and measurable advertiser value.” Pinterest added in its shareholder letter that pandemic-related lockdowns likely accounted for some of its user growth in 2020, particularly in the U.S., where it has been available longer, adding that it saw “good retention” of MAUs that it gained in 2020 during the first quarter of this year, even with the easing of stay-at-home orders leading to people spending less time online. More users shopping on its platform The company expects revenue growth for the second quarter of 2021 to be approximately 105% year over year, with global MAUs growing in the mid-teens, while they will be “flattish” in the U.S. Pinterest said the number of users engaging with shopping surfaces on its platform grew by more than 200% in the 12-month period ending March 31, and product searches were up by more than 20 times year over year as of the end of the first quarter. “It isn’t enough for [Pinterest users] to be able to find inspiring products and services on our platform. We must also make it easy for them to buy the products that bring their dreams to life,” the company said in its shareholder letter, adding that it will begin testing seamless on-platform transactions later in 2021. Pinterest also touted its Story Pins, saying that it improved the feature set during the first quarter and made them more widely available. And the company mentioned the rollout of its Creator Code in early April, which requires creators to accept its conditions before being enabled to post Story Pins, saying that the code was designed “to keep Pinterest a positive and inspiring place.” Co-founder and CEO Ben Silbermann said in a statement, “Whether it’s recipe ideas during the pandemic or dream vacation planning for the future, I’m proud that we now help 478 million people every month find inspiration to create a life they love. This quarter, we continued strong growth internationally, including our recent launch of advertising in Brazil, and made significant progress with shopping, making it easier for people to discover and buy products they find on Pinterest.” Pinterest, Shopify Extend Partnership to 27 More Countries

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Pinterest Posts Strong Q1 Revenue, Particularly Outside the US

The platform tallies 478 million monthly active users

David Cohen

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